Weekly Market Report

Mark Dyson, Managing Director

Mark Dyson

Wool market makes solid gains

A national offering some 10,000 bales less than last week and a steady Australian dollar trading at near 75 cents US resulted in the wool market making solid gains this week, with the Eastern Market Indicator (EMI) increasing by 43 cents per kilogram to settle at 1544c/kg clean.

The main price increases were recorded in the Merino wool sector with rises of 38-67c/kg. with the 18-21 micron guides profiting most, while less stylish wools found better competition as the forecast of lesser offerings over the next month began to have an effect on trade orders.

On the back of a limited supply of crossbred wool types little change was seen in values on the previous week, although the 32 micron guides found some demand on the finals day’s trading, up 11c/kg clean.

The carding sector was near unchanged for the week with lambs, crutchings and locks increasing 5-10c/kg, with stains trending easier.

Strong increases in the physical market over the past month have not fully transferred to forward spring indications, as buyers remain hesitant given current values, particularly for the Merino types, remain in the higher percentile ranges and the increased values seen this week tend to be driven by lack of wool volume.

Next week’s national wool offering is expected to fall just below the 40,000 bale mark to 39,253 bales.